Ron Dennis steps down from role at the head of McLaren

Ron Dennis has stepped down as chairman and chief executive officer of the McLaren Technology Group

Ron Dennis steps down from role at the head of McLaren

Dennis has been involved with McLaren since 1980, but after 36 years a decision has been taken by the majority shareholders to place him on gardening leave until his contract expires in January.

Dennis last week tried unsuccessfully to seek a High Court injunction to prevent such a move from taking place.

The 69-year-old remains on the boards of both McLaren Technology Group and McLaren Automotive Ltd, as well as being a significant shareholder in both companies.

Dennis currently holds a 25% stake in the McLaren Group, with a further 25% owned by long-time business partner Mansour Ojjeh, and the remaining 50% in the hands of Bahrain sovereign wealth fund Mumtalakat.

Prior to this move Dennis had been involved in a two-year behind-the-scenes power struggle, most recently making a last-ditch takeover bid with a Chinese consortium worth a reported £1.65billion.

With that failing, Ojjeh and Mumtalakat then launched their own countermeasure to remove him from office.

A statement claimed Dennis intends to honour his commitments to the group before launching a new technology investment fund later next year.

Dennis said: "I am disappointed that the representatives of TAG and Mumtalakat, the other main shareholders in McLaren, have forced through this decision to place me on gardening leave, despite the strong warnings from the rest of the management team about the potential consequences of their actions on the business.

"The grounds they have stated are entirely spurious; my management style is the same as it has always been and is one that has enabled McLaren to become an automotive and technology group that has won 20 Formula 1 world championships and grown into an £850million a year business.

"Throughout that time I have worked closely with a series of talented colleagues, to whom I will always be extremely grateful, to keep McLaren at the cutting edge of technology, .

"Ultimately it has become clear to me through this process that neither TAG nor Mumtalakat share my vision for McLaren and its true growth potential.

"But my first concern is to the business I have built and to its 3500 employees. I will continue to use my significant shareholding in both companies and my seats on both boards to protect the interests and value of McLaren and help shape its future.

"In addition I intend to launch a new technology investment fund once my contractual commitments with McLaren expire.

"This will capitalise on my expertise, my financial resources, together with external investment to pursue the many commercial opportunities I have been offered in recent years but have been unable to take up while being so committed to the existing business."

shares
comments
Rosberg and Hamilton make identical tyre choices for F1 season finale

Previous article

Rosberg and Hamilton make identical tyre choices for F1 season finale

Next article

McLaren seeks new CEO to replace 'true great' Ron Dennis

McLaren seeks new CEO to replace 'true great' Ron Dennis
Load comments

About this article

Series Formula 1
Teams McLaren
Author Ian Parkes
The clues Hamilton’s F1 contract afterthought gives to his future Plus

The clues Hamilton’s F1 contract afterthought gives to his future

The Formula 1 world reacted with surprise when it learned Lewis Hamilton’s long-awaited new Mercedes deal guarantees his presence on the grid only until the end of 2021. Both parties claimed publicly they were happy with the arrangement but, asks MARK GALLAGHER, is there more to it than that?

How a harshly ejected Red Bull star has been hooked by racing again Plus

How a harshly ejected Red Bull star has been hooked by racing again

Driver-turned-DJ Jaime Alguersuari lost his love for motorsport when he was booted out of Formula 1 just as he was starting to polish his rough edges. Having drifted from category to category then turned his back on racing altogether in 2015, he’s come full circle and is planning a return in karts for fun

Why Mercedes isn't confident it's really ahead of Red Bull at Imola Plus

Why Mercedes isn't confident it's really ahead of Red Bull at Imola

While Mercedes struck back against Red Bull by topping the times at Imola on Friday ahead of the Emilia Romagna Grand Prix, the overall picture remains incredibly close. Despite having a possible edge this weekend, the reigning Formula 1 world champion squad is not taking anything for granted...

Formula 1
Apr 16, 2021
What Mercedes must do to keep its F1 title challenge on track Plus

What Mercedes must do to keep its F1 title challenge on track

Mercedes may find itself leading the drivers' and constructors' standings after Lewis Hamilton's victory in the Bahrain Grand Prix, but it is well-aware that it came against the odds, with Red Bull clearly ahead on pace. Here's what the Brackley team must do to avoid its crown slipping

Formula 1
Apr 16, 2021
Why Tsunoda can become Japan’s greatest F1 talent Plus

Why Tsunoda can become Japan’s greatest F1 talent

While Japan's fever for motor racing is well-documented, the country has yet to produce a Formula 1 superstar – but that could be about to change, says BEN EDWARDS

Formula 1
Apr 15, 2021
Why the demise of F1's hypocritical spending habit is cause for celebration Plus

Why the demise of F1's hypocritical spending habit is cause for celebration

For too long, F1's richest teams have justified being able to spend as much as they want because that's the way they've always conducted their business. STUART CODLING says that's no reason not to kick a bad habit

Formula 1
Apr 14, 2021
The double whammy that is defining Vettel’s F1 fate Plus

The double whammy that is defining Vettel’s F1 fate

It's been a tough start to Sebastian Vettel's Aston Martin F1 career, with a lack of pre-season testing mileage followed by an incident-packed Bahrain GP. But two key underlying factors mean a turnaround is not guaranteed

Formula 1
Apr 14, 2021
The diva that stole a march on F1’s wide-bodied opposition Plus

The diva that stole a march on F1’s wide-bodied opposition

In 2017 new F1 technical regulations were supposed to add drama - and peg Mercedes back. STUART CODLING looks at the car which, while troubled, set the stage for the wide-bodied Formula 1 era

Formula 1
Apr 13, 2021